Bear-run continues on DSE amid selling pressure
Md. Asiful Huq
Share prices on the Dhaka Stock Exchange (DSE) extended their bear-run to the sixth session Tuesday amid a selling pressure by the small investors, brokers said.
Brokers said the investors' sentiment is depressed due to absence of support from the institutional investors.
DSE all share prices index (DSI) shed 22.37 points or 1.52 pert cent to close at 1142.47 while DSE general index (DGEN) fell by 29.79 points or 1.96 per cent to close at 1496.84.
DSE-20 blue chip index fell by 21.22 points or 1.46 per cent to close at 1423.96 at the end of the day.
A total of 194 issues were traded on the day, of which 23 gained, 155 declined and 16 remained unchanged.
Talking to the FE chief executive officer (CEO) of ICB Securities Trading Company Ltd. Nurul Alam said: "I don't find any reason for continuous share price fall. It is interesting to seen that whenever a company is declaring dividend, the company's share price falls instead of a hike."
Citing example of share prices of Bank Asia and Mutual Trust Bank Ltd. (MTBL), Alam said though these two banking institutions declared good dividend, prices of these shares fell.
Share prices of Bank Asia fell by 1.77 per cent to close at Tk 470.25 while share prices of MTBL declined by 2.46 per cent to close at TK 346.75.
Brokers said Southeast Bank, Beximco Pharmaceuticals and Exim Bank shares were traded in heavy volume as their prices fell amid selling pressure.
Southeast Bank lost 2.02 per cent to close at Tk 543 on a volume of 26,750 shares worth Tk 14.54 million and became the turnover leader on the day.
Southeast Bank shares were traded heavily as the investors expected the bank to issue rights share as well as cash dividend.
Prices of Beximco Pharmaceuticals and Exim Bank shares fell by 1.41 per cent and 1.12 per cent to close at Tk 55.70 and Tk 482.50 respectively.
Share prices of United Leasing company (ULC) and Dhaka Bank fell by 36.18 per cent and 1.60 per cent respectively due to ex-dividend trading on the day to close at Tk 577.50 and Tk383.50 respectively.
Brokers said share price of Apex Footwear increased by 0.92 per cent to close at Tk 434.5. The company recently declared 22 per cent cash dividend for 2005.
Islamic Bank share price fell by 2.14 per cent to close at Tk 4249.25 while Summit Power share lost 2.36 per cent to close at Tk 360.75
Broker said the market is falling despite the news of good dividend offers by several companies.
Talking to the FE Shaikh Rezwan Reza of Shakil Rizvi & Co. said the market is falling consistently due to shortage of fund for investment in the market.
Reza criticised the institutional investors for not playing their due role in a bearish market.